Each share will be accompanied by a warrant to subscribe for a further share at a price of 3.0p per share. Shares in BlueRock closed up 2.7% at 1.92p per share on Monday.
The company said it will use the majority of the funds to develop and expand its mining activities in
Currently, BlueRock is focused on mining pipe 2 and intends to incorporate pipe 1, which is located 40 metres from pipe 2, into the main plan. The group said that although both pipes are of a similar size, pipe 1 has an inferred grade of 6.3 carats per hundred tonnes, 40% higher than the inferred grade of 4.5 carats per hundred tonnes of pipe 2.
BlueRock said the previously guided production target of 275,000 tonnes of ore in 2018 remains "at the bottom end" of the company's expectations. It is seeking to increase the recovered grade at Kareevlei from the current expectation of 3.5 to 4.5 carats per hundred tonnes of ore.
BlueRock Chief Executive Officer Adam Waugh said: "Opening up pipe 1 will offer us flexibility in our mine planning as operations expand at Kareevlei. These funds will allow us to do the necessary preparation to pipe 1 and put us in a position to be mining kimberlite from pipe 1 during the third quarter of 2018. We are currently mining pipe 2 and continue with our bulk sampling work at pipe 5."
"We are excited by the potential we've seen at Kareevlei particularly, as we have been progressing deeper into pipe 2. We look forward to continuing to expand our operations and soon having kimberlite available from three of our five identified kimberlite pipes," Waugh added.